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TMI Blog2019 (12) TMI 419X X X X Extracts X X X X X X X X Extracts X X X X ..... that the appellant is a cargo handling agency. All activity undertaken by the appellant, though related to packing activity, is at a stage when the goods are yet to clear the factory gate as manufactured goods for onward transportation. Cargo Handling Service pre supposes that the material being handled is cargo. Cargo means goods transported by a vessel, airplane or vehicle . Material movement of goods within the factory premises do not qualify as cargo and any such handling or shifting of material does not amount to cargo handling and therefore is not chargeable to service tax under Cargo Handling Service - the demand confirmed by the impugned order with respect to cargo handling services needs to be set aside along with interest and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ct, 1994. 5. The appellants were registered with the Department for provision of Management, Maintenance or Repair Service . Based on specific intelligence collected by the Department that the appellants have not discharged the service tax correctly, enquiries were conducted and documents were recovered from the appellant which showed that they had entered into a contract with M/s Zuari Cements Limited for shifting the material from one place to another within their factory premises. They had also entered into an agreement for maintenance of railway track inside the premises of M/s Zuari Cements Limited and for this purpose, they had engaged skilled and unskilled labour to fill or remove gravel, checking the fish plates and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e has been settled by Hon ble Apex Court in the case of Signode India Limited [2017 (50) S.T.R. 3 (S.C)]. Paras 9, 10, 16, 17 of this judgment are reproduced below: 9. The distinction between the two expressions, namely cargo and goods in the two different provisions of the Act becomes evident if cargo is understood to denote goods which are ready for transportation whereas packaging of goods is a stage prior i.e. before they became cargo and in fact on completion of such packaging the goods become cargo. The position becomes more clear if the dictionary meaning of the word cargo is taken into account, as set out below: As per Black Law Dictionary, the word cargo means Goods transported by a ves ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat the demand confirmed by the impugned order with respect to cargo handling services needs to be set aside along with interest and corresponding penalties. 11. As far as the demand under Management, Maintenance or Repair Service is concerned, we find that the first appellate authority has not recorded any findings and we therefore deem it appropriate to remand the matter back to him for the limited purpose of recording his findings on this demand. In consequence, the appeal is allowed to the extent of demand, interest and penalties as far as cargo handling services are concerned and remanded to the first appellate authority as far as the demand with respect to Management, Maintenance or Repair Service is concerned. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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